Tuesday, January 19, 2010

PCB 2010 income tax deduction rate

For your information, the Inland Revenue Board of Malaysia (a.k.a. Lembaga Hasil Dalam Negeri, LHDN) has come out a new Potongan Cukai Bulanan (PCB, a.k.a. Scheduled Monthly Tax Deduction) 2010 rate.

The monthly salary deduction amount, across all taxable income categories, is now slightly lesser than the previous PCB 2009 rate.

According to the previous 2009 rate, unmarried person earning monthly income of RM2,401 and above will be taxable, and the PCB deduction for them is RM13.

With the new 2010 rate, unmarried person will be taxable only when their monthly income exceeding RM2,451, and the PCB deduction for them is RM10 (previously was RM16 under PCB 2009).

Click here to download the new Jadual PCB 2010 schedule table.

Click here to download the previous Jadual PCB 2009 schedule table.

You might probably be interested to read about:

17 comments:

Anonymous said... Reply To This Comment

is pcb tax rate is based on after deduct epf2 (8%) ? For example, I am unmarried person & my monthly salary is RM4000 & epf2 is RM320, therefore my nett pay is RM3680. So should I paid RM164 or RM128 ?

Voyager8 said... Reply To This Comment

Hi,

It should be after EPF and Zakat.

It is advisable for you to check with your HR.

Anonymous said... Reply To This Comment

Hi, just need a little clarification. Is the schedule showing income after EPF deduction? Anyway, max deduction for EPF allowable is only Rm6000/year. That mean if your pay is more than Rm5000, it is beyond the allowable deduction. Am I right?

Anonymous said... Reply To This Comment

Actually, as far as how I understand the process,
the PCB table lookup happens on your Gross Salary (minus non-taxed allowances AND EPF).

EPF value can be calculated value, EPF table lookup, or 500, whichever is lower.
Non-taxed items like petrol allowances are non-taxable (but still EPF taxable).

The value from the PCB table is the total tax you need to pay. If you had paid any zakat, you can deduct from this tax payable value, and that's the amount left that you still need to pay. If zakat is more, you don't owe any taxes.

Hugo Lo said... Reply To This Comment

this PCB 2010 when start effect?

Anonymous said... Reply To This Comment

Is the PCB table reference provided yearly for downloadable ? Llet say RM2451 - 2500, PCB=10.00, is there any formula to compute the PCB ?

Voyager8 said... Reply To This Comment

Hi,

New PCB table will be provided when there is change in calculation, else the existing one can be used for years.

The formula is very complicated.

Anonymous said... Reply To This Comment

Hi Voyager8,

Will Socso be deducted from Gross Salary to determine the monthly PCB deduction? other than non-tax allowance.

And what is the common EPF rate an employee can opt for? 8% or 12% ? Should an employee choose the lowest or highest? and what's effect on PCB deduction?

Is employer's EPF contribution to employees is always 12% ?

Looking forward your prompt reply.

Voyager8 said... Reply To This Comment

Hi,

SOCSO forms a very small part of your monthly deduction, and not determined for PCB deduction.

Normal employee's EPF contribution rate is 11%. From Jan 2009 until Dec 2010, the employee's portion is reduced to 8%, unless you opt for 11%. At the time being, no need to choose, because the 8% reduced rate is going to end soon.

Employer's portion is minimum at 12%. Some company give higher than that, some even give as high as 20%.

yiang said... Reply To This Comment

Hi

for example my salary is 2500 after deduction of EPF (275) is 2225 tat mean i don't have to contribute tax ?

Anonymous said... Reply To This Comment

Hi Voyager8,

What if my salary is calculate based on daily rate.. can you show me how's the PCB calculation like?

RM200 , worked for 20 working days

(Basic Pay)200* 20 = RM4000

Anonymous said... Reply To This Comment

thanks! this is very helpful

julieteh85 said... Reply To This Comment

my company cut my salary monthly PCB to LHDN. i read in the website tht individual can get tax exempted for bills eg maxis BB, buks, laptop but i never get the money back from LHDN. the letter of rebate saying i didnt have excess $ in my LHDN account. why? pls help me.. thank you

confused

Voyager8 said... Reply To This Comment

@julieteh85

You need to file your tax by filling up the online e-Filing form around March-April every year.

In the form, you declare all your entitled tax rebates and exemptions, together with your taxable incomes.

If there is excess in your tax account, LHDN will pay you back the money.

The website is:
https://e.hasil.gov.my/

julieteh85 said... Reply To This Comment

i did it this year april b4 the deadline(online) for the eBE form. i didnt c any column to tick entitled tax rebate.. after few weeks of the submission eBE online, i received a letter saying i didnt hv any excess in my account..is that mean i am nt entitled for the rebate? wht should i do nw?
another question is how much monthly income will need to pay tax? net income (after deduction of EPF) or gross income (b4 epf deduction)?

Voyager8 said... Reply To This Comment

@julieteh85

Read the e-Borang Manual for details.

If your company deducts PCB for you, then your monthly income is subject to tax. Refer to the Jadual above for the deduction rate, and it is calculated based on salary after EPF deduction.

wasida97_6bossombuddy said... Reply To This Comment

BAGAIMANAKAH CARANYA UTK MEMBUAT CLAIM PCB THN LEPAS YG TDK DKENAKAN CUKAI?

Post a Comment

Hint: Click on the "Older Posts" link to continue reading, or click here for a listing of all my past 3 months articles.